What are the 4 tasks of Econ?
- Guiding = > Policy
What is positive economics?
Shows a cause and effect relationship; what is; fact
What is normative economics?
What ought to be; "should"; based on value, judgment, opionion.
What are the two objectives of the Simple Circular Flow model?
To identify roles and flows.
What are the 4 assumptions in the Simple Cicular Flow Model?
- a) 2 sectors - households and firms
- b) Households own all the resources
- c) Firms carry out all the productions
- d) 2 markets - a final goods and services & resource
What are the determinates of Demand?
Price, Income, Price of related goods, taste/preferance,...
What are the determinates of Supply?
Price, wages, Price of other imputs, technology, ...